DJ United Tractors To Issue 403.25 Mln Rights Shares In May

Date : Mar 31 2011, 10:17

Title : News Story

Header : DJ United Tractors To Issue 403.25 Mln Rights Shares In May

Story

=======================================================================================

JAKARTA (Dow Jones)--Heavy equipment company PT United Tractors (UNTR.JK) said

in a prospectus Thursday that it plans to issue 403.25 million rights shares

at IDR15,050 each.

Shareholders are eligible to buy four rights shares for every 33 existing

shares they own, the company said. Shareholders who don't subscribe to the

rights shares may have their ownership in Tractors diluted by 10.8%, it added.

Tractors, 59.50%-owned by car maker PT Astra International (ASII.JK), said

that it will seek approval from shareholders at a meeting on May 2.

The company said that 90% of the proceeds from the rights issue will be used

to finance business expansion at it coal mining unit and 10% to strengthen its

working capital.

Analysts said that Tractors could raise IDR6.1 trillion ($689 million) in

gross proceeds from the rights issue.

-By Edhi Pranasidhi, Dow Jones Newswires, 62-21-39831277;

edhi.pranasidhi@dowjones.com>

Click here to go to Dow Jones NewsPlus, a web front page of today's most

important business and market news, analysis and commentary:

http://www.djnewsplus.com/access/al?rnd=4mL9h5teoHEiIJUq7RxHFw%3D%3D. You can

use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

March 30, 2011 22:56 ET (02:56 GMT)

Copyright (c) 2011 Dow Jones & Company, Inc.- - 10 56 PM EDT 03-30-11

=======================================================================================